Unlike regular invoices, invoices including a * AR (Account Receivable) payment from the customer cannot be reversed automatically. You have to do it manually by following this order of ideas:

  • Step 1 : Return the paid invoice amount to the customer's account (in AR)
  • Step 2 : Return the cashed amount to the correct account (ex: Check, MasterCard, Check, ...)
  • Step 3 : Payment collection (AR) with the necessary corrections.


Step 1 - Return the paid invoice to the customer's account

View your invoice to reverse and take note:

  • the amount,
  • payment method
  • the date
  • If necessary, the number of the invoice included in the payment

Once this information is in hand, follow the instructions below:

From the Point of Sale,

a) create the category 

  • Create a new part type category (ex: 295: 'NSF"),
    • Configured as a PARTS TYPE
    • Non-taxable,
    • Exclude from sales report,
    • Enter a description, 
  • Save,

b) create the product: 

  • Open the inventory window (Spyglass in the line item from the grid in POS)
  • Click the "+",
  • Chose the category: 295,
  • Enter a new code (ex: ADJUST ) and continue,
  • Save.

C) Back in the POS,

  • Make a new estimate for this client,
  • In the product line, enter a new code (ex: ADJUST ) and continue,
  • Leave the default quantity ( 1 ),
  • Enter the price that corresponds to the amount of the paid invoice,
  • Save.


  • You can verify the taxes by clicking on the product line you have just created and click on the small " EXT" button to the right of the line for adding a product,
  • Click twice on your " NON TAXABLE " tax group (ex: "TAX-EXEMPT"),

  • Click "F4" to close the invoice,
  • Change the date to the NSF date,
  • Select the payment "Receivable",
  • Click on the $ icon,


  • NOTE that the date of NSF transaction is normally 5-7 days from the original transaction


Step 2 - Remove the payment received of the payment on record (Check, MasterCard)

  • Repeat exactly the same procedure from the previous step, changing only:
    • The description of the product (ex:  RETURN TRANSACTION: CHECK invoice # 50020 ),
    • The quantity of the product at -1,

  • Click on F4 to close the invoice,
  • Change the date to the NSF date,
  • Select the payment Ex: "Check",
  • Click on the $ icon,


  • When invoicing, enter the correct transaction date of the NSF, the same method of payment as the payment received from the customer (ex: CHECK ),
  • Click on the dollar sign "$" to close the invoice without printing or click on the printer to print.


Step 3 - Apply for the payment on the account after the collected NSF is eventually received

  • Create a new estimate in the name of the same client,
  • Click on the green dollar sign "$" or enter your "Account Receivable" product code (ex: AR),
  • Select the invoice to pay,
  • Close the invoice as usual, with a memo "NSF invoice for audit trail" the current date and method of payment.
  • For more detail, visit the FAQ : How to register a payment on an account receivable customer?